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Big Profits, Bigger Plans: Piramal’s Bold ₹10B Debenture Bet Begin

Swarnadwip Nath Published Jul 29, 2025, 04:36 PM Updated Sep 18, 2026, 04:43 AM

Piramal Enterprises Ltd. (PEL), a leading diversified non-banking financial company (NBFC), has reported a solid financial performance for the quarter ended June 2025. The company posted a consolidated net profit of ₹2.76 billion and total revenue from operations of ₹26.43 billion. In a strategic...

Key Highlights from Q1 FY26

- Consolidated net profit: ₹2.76 billion

- Total revenue from operations: ₹26.43 billion

- Proposed NCD issuance: ₹10 billion

- Continued growth in retail and wholesale lending segments

- Strong liquidity and capital adequacy maintained

Financial Performance Snapshot

Revenue and Profitability

- The company’s revenue from operations rose to ₹26.43 billion, reflecting healthy growth across its lending verticals.

- Net profit of ₹2.76 billion marks a steady improvement in bottom-line performance, supported by operational efficiency and lower credit costs.

- Net interest income and fee-based income contributed significantly to the topline, with stable margins across retail and wholesale portfolios.

Asset Quality and Liquidity

- Gross non-performing assets (GNPA) and net NPA ratios remained within manageable levels, indicating prudent risk management.

- Liquidity coverage remained robust, with cash and liquid investments exceeding ₹10 billion.

- Capital adequacy ratio continues to be well above regulatory thresholds, reinforcing the company’s financial stability.

Strategic Fundraising Initiative

- PEL’s board has approved the issuance of secured, listed, redeemable non-convertible debentures aggregating up to ₹10 billion.

- The NCDs will be issued in one or more tranches, depending on market conditions and investor appetite.

- The fundraising is aimed at diversifying the borrowing mix and supporting growth in high-yielding segments such as retail mortgages and SME lending.

- The move aligns with PEL’s strategy to maintain a balanced liability profile and reduce reliance on short-term borrowings.

Business Segment Performance

Retail Lending

- Retail assets under management (AUM) saw double-digit growth, driven by demand for home loans, loan against property, and used car financing.

- Disbursement yields remained stable, with strong traction in Tier 2 and Tier 3 cities.

- Cross-sell initiatives and digital onboarding contributed to customer acquisition and retention.

Wholesale Lending

- Wholesale 2.0 portfolio continued to expand, with disciplined underwriting and granular exposure across mid-market corporates.

- Effective interest rates remained attractive, and prepayment rates indicated healthy borrower cash flows.

- The company is gradually winding down its legacy wholesale book, with a focus on quality and profitability.

Market Sentiment and Outlook

- Investors responded positively to the earnings announcement and fundraising plan, with PEL’s stock showing resilience amid broader market volatility.

- Analysts view the NCD issuance as a proactive step to secure long-term funding and support scalable growth.

- The company’s merger with Piramal Finance Ltd. is progressing through regulatory channels, expected to unlock operational synergies and simplify the group structure.

Conclusion

Piramal Enterprises’ Q1 performance underscores its strategic clarity and operational discipline. With a strong earnings base, prudent asset management, and a forward-looking capital strategy, the company is well-positioned to navigate the evolving financial landscape. The proposed ₹10 billion NCD issuance reflects confidence in its growth trajectory and commitment to delivering value to stakeholders.

Source: Moneycontrol and CNBC-TV18

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